5 Best German Stocks to Buy Now

2. SAP SE (NYSE:SAP)

Number of Hedge Fund Holders: 17

SAP SE (NYSE:SAP) operates as an enterprise application software company worldwide. On October 25, SAP SE posted earnings for the third quarter of 2022, reporting earnings per share of $1.12, missing market estimates by $0.13. The revenue over the period was €7.84 billion, up 14.6% compared to the revenue over the same period last year and beating market estimates by €240 million. 

On December 2, Stifel analyst Brad Reback maintained a Buy rating on SAP SE (NYSE:SAP) stock and raised the price target to EUR 135 from EUR 130.

Among the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading shareholder in SAP SE (NYSE:SAP) with 6.8 million shares worth more than $549.6 million. 

In its Q3 2022 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and SAP SE (NYSE:SAP) was one of them. Here is what the fund said:

“SAP SE (NYSE:SAP) is Europe’s largest software company and the global leader in enterprise resource planning (ERP) software. ERP is a software category that is particularly critical to business functions, and, therefore, has high retention rates even in times of economic stress. For the past several years, SAP has been going through several transitions, including moving to cloud-based SaaS (Software as a service) solutions and an initiative to better integrate its various software solutions. In recent quarters, we have seen increasing evidence that both transitions are being successfully executed, and the result should be a faster-growing, more consistent, higher margin, and more advantaged business. As investment costs from these transition programs wane, and as the benefits of higher growth continue, we expect that earnings will grow at a double-digit rate from next year (2023) onwards. In light of this, we believe the valuation is very attractive for long-term investors.”